FKI rebuts FTC¡¯s right to trace accounts

The Federation of Korean Industries (FKI) denounced the extension and broadening of the Fair Trade Commission¡¯s (FTC) two-year temporary implementation of the right to trace accounts, saying that it raises the problem of double investigation and could lead to abuses of power.

The FKI asserted September 4 through a report titled ¡°Hot Issues and Tasks for Insider Trading and the Right to Trace Accounts¡± that extending the FTC¡¯s right to trace accounts could result in negative side effects on big deals, the existence of insolvent affiliates and the restructuring of the financial structure by companies in the 30th ranking. The FKI also noted the reform of the corporate sector was in its final stages.

The FKI further asserted that the extension could lower the competitiveness of the domestic companies and give unfair advantages to foreign companies doing business in Korea, which are not subject to the restriction. The FKI added that the restriction could lead to the leakage of operational secrets of domestic companies and lower their motivation as well as their credit ratings.

The FKI pointed out that the extension of the FTC`s right to trace accounts even after the end of an

emergency situation such as the currency crisis is an abuse of power.